~ latest modelling software enables insurers to predict future by reviewing millions of historical policies and claims ~
EMB, the non-life actuarial and business consultancy, has launched the latest releases of software products within its Personal Lines pricing suite. By using the software, actuaries are able to develop profitable pricing strategies for non-life risks such as individual motor policies, household contents, pets, yachts, small commercial vehicles and more.
The performance of both applications (Classifier and Rate Assessor with Optimiser) has been increased to handle more variables at a higher degree of granularity providing optimal detailed pricing information in seconds.
Rate Assessor 2.2 is the latest version of EMB’s rate-setting decision support tool which enables insurance companies to explore how pricing strategies can impact market share, retention, new business and current/future year profits. Alternative scenarios based on customer behaviour and market pressures can be modelled in seconds, with a graphical environment including powerful slicing and dicing of data for comparison of portfolio segments. Past policy and even census data can be imported from a wide variety of systems and models.
“The upgraded versions dramatically increase the scale of pricing scenarios that can be modelled as well as providing the ability to run an infinite number of scenarios to offer the ultimate price for a piece of business,” said Andy Lingard, head of software at EMB. “Spreadsheets today are just not up to the job and should be ditched. Using EMB applications, an insurance company can be sure that optimal prices can be found by systematically combining cost models, demand models and market prices. Clients using these products have seen profitability increase by as much as 30 per cent.”
“With the latest version of Classifier, an insurance company is able to gain detailed geographic categorisation and assessment of exposure even where they have no claims history - a notoriously difficult challenge in the past. The EMB software makes this simple by combining internal and external data. This means that insurers can now confidently write profitable business in new areas. In today’s competitive market this sort of detailed analysis is critical. A competitive price must be backed-up by a realistic assessment of the risk,” added Karl Murphy, partner at EMB.
Close integration of Classifier with EMB’s EMBLEM and Rate Assessor products add pricing optimisation and decision support to a uniquely powerful overall solution. EMB works with over 80 per cent of the world’s top non-life insurance companies to develop Personal Lines pricing, using EMB pricing software which is widely acknowledged as a benchmark for the modelling and pricing of risk.
5th February 2008
